The cloud world is going greener. According to the Flexera 2025 State of the Cloud Report, organizations across the globe are making significant moves toward more environmentally friendly cloud strategies. Although cost optimization still leads the way, a clear focus on environmental responsibility is starting to reshape the industry—and it’s gaining momentum.
The current state of cloud sustainability
According to the report, 36% of organizations now have defined sustainability initiatives that include tracking their carbon footprint through cloud usage. This represents a notable increase from previous years, signaling a growing awareness of the environmental impact of IT operations.
Fifty-seven percent of organizations expect to have a defined sustainability initiative in place within the next year.
Even more promising is that an additional 21% of organizations plan to implement such initiatives within the next year, and 14% more are planning beyond that timeframe. This means that over 70% of organizations will soon be actively monitoring and managing the environmental impact of their cloud infrastructure.
Not surprisingly, European organizations continue to lead the charge, with 43% already having defined sustainability initiatives compared to 32% in North America. This 11-percentage-point gap highlights the influence of Europe’s more stringent regulatory environment. Still, the gap is closing, suggesting North American companies are accelerating their sustainability efforts to catch up with their European counterparts.
European organizations are more likely to have defined sustainability initiatives than those in North America.
These numbers may be surprising to some—but perhaps not. Around the world, governments are stepping up regulations that require companies—especially larger ones—to disclose their carbon emissions, and the U.S. is following suit. These shifts come at a time when the environmental impact of digital infrastructure is under increasing scrutiny.
Take, for example, the amount of water required for a single data center. With more than 7.2 million data centers operating globally, which continues to grow, the strain on natural resources is significant. One data center can consume between 1 and 5 million gallons of water per day, primarily for cooling systems. As sustainability becomes a topic in boardrooms, enterprises are now being asked not only to report on financial metrics like revenue, profit, and EBITDA, but also to closely examine their environmental footprint, particularly their carbon and water usage tied to the cloud and their IT operations.
Balancing cost and sustainability
While sustainability is growing in importance, it’s clear that financial considerations still dominate decision-making:
- 57% of organizations prioritize cost optimization over sustainability
- 31% give equal priority to both cost and environmental impact
- Only 9% place sustainability and carbon footprint reduction above cost considerations
Financial considerations still dominate.
This balance reflects the practical reality many businesses face: They must justify investments in sustainability through a financial lens. The good news is the fact that nearly a third prioritizing both factors, suggesting a growing recognition that these goals can be complementary rather than competing.
What’s the path forward?
As cloud usage continues to expand, with organizations reporting they expect to increase their cloud spending by 28% in the coming year, the environmental impact of this growth becomes increasingly significant. The Flexera 2025 State of the Cloud Report suggests several emerging trends:
- Integration of sustainability metrics into broader FinOps practices
- Growing pressure from both internal stakeholders and external regulations
- Rising importance of cloud providers’ sustainability credentials in selection decisions
- Increased sophistication in measuring and reporting environmental impact
Industry leaders are beginning to recognize that proper optimization must consider both financial efficiency and environmental responsibility. The most forward-thinking organizations are finding that these goals often align; many of the same strategies that reduce costs, such as rightsizing resources, eliminating waste, and optimizing workloads, also minimize environmental impact.
Announcing Flexera’s Cloud Sustainability add-on: Available Earth Day 2025
As sustainability regulations increase and enterprise organizations prioritize environmental, social and governance (ESG) initiatives as well as sustainable IT efforts, Flexera is proud to announce the Cloud Sustainability Add-On for Cloud Cost Optimization customers, launching April 22, 2025 (Earth Day) with early access available to customers starting that day.
Flexera’s approach leverages Technopedia, the industry’s leading technology data reference catalog, for on-premises data centers and devices, providing comprehensive insights that connect our FinOps solutions with sustainability goals.
These new capabilities will enable you to measure, track and optimize your carbon footprint across hybrid IT environments. By integrating sustainability metrics with cost management, our solution acknowledges the reality that 31% of organizations now give equal priority to financial and environmental considerations. For those already tracking cloud carbon footprint or planning to do so soon, these expanded capabilities provide the tools needed to move from essential measurement to sophisticated sustainability management.
Cloud sustainability is no longer just a “nice-to-have” initiative
Cloud sustainability is no longer just a “nice-to-have”—it’s quickly becoming a must-have for organizations everywhere. While cost savings still top the list, more and more enterprises are implementing formal sustainability tracking, demonstrating a real shift in how the industry thinks about its impact. With growing pressure from regulators and rising expectations from customers and stakeholders, sustainability metrics are on their way to becoming just as essential to cloud operations as financial ones.
The good news? Flexera’s Cloud Sustainability Add-On makes it easier than ever to stay ahead. It helps you cut your environmental footprint while boosting efficiency, building trust, and remaining compliant. Mark your calendars for Earth Day 2025, when we take the next step in helping organizations make more sustainable cloud environments.
Get more insights from the Flexera 2025 State of the Cloud Report below.
